L3 Technologies, Inc. (LLL) said Wednesday that it has agreed to acquire Azimuth Security and Linchpin Labs, two information security businesses.

L3 noted that the cyber acquisitions will significantly strengthen its existing C6ISR or Command, Control, Communications, Computers, Cyber-Defense and Combat Systems, and Intelligence, Surveillance and Reconnaissance capabilities. The acquisitions will also create synergies to drive future growth in cyber and international markets.

The combined purchase price for the two businesses was about A$270 million, or about $200 million. The purchase price is subject to an upward adjustment of up to A$43 million, or about $32 million, payable in L3 common stock, based on the combined company's post-acquisition sales for each of the 12-month periods ending June 30, 2019 to 2021, which would be payable in 2019 to 2021.

L3 expects this transaction to be completed during the second half of 2018.

Based in Australia, Canada, the United Kingdom and the U.S., Azimuth and Linchpin operate in the strategic fields of computer network operations and vulnerability research for intelligence partners and other government, defense and security agencies around the world.

The acquired companies will become L3 Trenchant upon completion of the transaction and will help deliver advanced capabilities integral to a variety of complex ISR and classified missions.

For 2019, L3 expects Trenchant to add about $65 million to net sales after amortization of acquired deferred revenue and to be slightly earnings per share accretive after employee retention expenses as well as business combination purchase accounting adjustments, including intangible asset amortization expenses.

"These acquisitions sharpen our capabilities, heighten our responsiveness and advance L3's prime position as a C6ISR solutions provider. We are making targeted investments in cutting-edge technologies and integrating them with existing capabilities to support our domestic and international customers in strategically important business areas," said Christopher Kubasik, L3's Chairman, Chief Executive Officer and President.